Thursday 29 March 2012

Moving the goalposts - again!

At the beginning of this week DECC published its timetable for implementing the RHI or Renewable Heat Incentive.  It's a great incentive because it works in the same way as Feed-in Tariffs and ROCS - it pays you to produce, and hopefully use, renewable heat.

And yet, in the same ways as they dramatically changed Feed-in Tariffs at short notice, the Government have now announced a delay of the second phase of RHI till 2013.  The disappointment within the renewables industry is palpable.  The Solar Trade Association, ABDA (the anaerobic digestion industry body) and the Renewables Energy Association have called the changes "premature", "unhelpful" and a "source of huge frustration".

The sting in the tail, however, is the small part of the announcement that stated the Government is proposing a policy of "cost control".  In other ways, it is keeping the door open to do what it did with FITs, dropping the level of incentive at short notice.

While the talk this week has been about panic buying petrol, pies and postage stamps, the serious issue is the lack of growth in the economy.  There is little plan for growth and absolutely no plan for sustainable growth.  This change, once again, to existing schemes continues to undermine the fledgling green industries that should be at the centre of our economic strategy.  People will not invest when the future is so uncertain.  A depressing time for all of us working in this area.

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